New funds support Challenger result
Challenger Financial Services Group has reported a normalised net profit after tax (NPAT) of $116 million for the six months to December 31 2009, a 9 per cent increase compared with the six months to December 31 2008.
The group reported statutory NPAT of $177 million on the back of positive investment experience in Challenger Life.
Challenger chief executive Dominic Stevens said the group "remains in a very strong financial position during a time of further change and opportunity in the financial services sector".
In his half-yearly update to the market today Stevens pointed to the expansion of the group's offering into the institutional marketplace, as well as rapid platform placement of its recently released Guaranteed Income Fund.
The group's total assets under management were up 12 per cent on the previous corresponding period after adjusting for the sale of the group's mortgage distribution business to National Australia Bank.
Funds under management (FUM) rose 15 per cent over the same period, with the group pointing to strong inflows into its boutique partnerships as well as market-linked movements. Challenger now has $4 billion of FUM in its boutique funds.
Life assets under management also rose by 10 per cent compared with the previous corresponding period following strong annuity sales, the contribution of recovering investment markets and the introduction of guaranteed index return products, the group said.
Challenger is positioning itself as one of the potential providers of answers to the questions posed in the current Government review of superannuation by aiming to provide simple products with low fees and elements of guaranteed income.
The group is continuing to focus on financial advisers and SMSF trustees as channels for its Guaranteed Income Plan and Guaranteed Income Fund to access the retail half of the superannuation investment pool.
AUTHOR
By Beaman
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
